Undifferentiated Marketing-Everything you need to know

Undifferentiated Marketing-Everything you need to know12 min read

undifferentiated marketing explained

Undifferentiated marketing, usually known as mass marketing, is when a firm ignores unique segment differences to focus on the entire audience with a single offering. It enables firms to reach out to more consumers for less money while also improving brand recognition.

What is Undifferentiated Marketing?

Pizza depicting undifferentiated marketing

Let’s think of the market as one big pizza. Further, the undifferentiated marketing strategy doesn’t take a slice or few quarters of the pizza. It takes the whole thing.

Mass marketing aims to reach as many people as possible in the hopes that they will support your brand. One advantage of this approach is that it is inexpensive. So, it is less expensive for brands to manufacture goods and create content targeted to, well, everyone.

To illustrate, Any Coca-Cola campaign is a common example of undifferentiated marketing. Coca-Cola sells its iconic soda using the same bottle design, ads, and distribution channels. With a few exceptions, it has used the undifferentiated approach for most of its history.

Examples of Undifferentiated Marketing

  • Coca-Cola
  • General Motors
  • Colgate
  • M&Ms
  • Persil

Coca-Cola

The CocaCola Company is a global nonalcoholic beverage company and one of the world’s most recognizable brands. In fact, Coca-Cola uses mass marketing strategy. The brand continues to advertise its products to many consumers across the globe who are eager to purchase this well-known beverage. The product’s label, bottle shape, aroma, and flavor have all changed throughout the years. Still, it continues to sell in record numbers

General Motors

The American multinational corporation founded in 1908 claims to produce equipment suitable for any situation. Indeed, the company does have vehicles for all age groups. And, the company is ever-ready to deliver products for a wide range of cars from various brands to satisfy buyers’ needs.

Colgate

Colgate is an American multinational consumer products company founded in 1806. It mainly provides personal care products like toothpaste. Since Toothpaste does not have age groups; everyone uses it. Thus there is no need to segment clients. As a result, the brand enjoys a large following.

M&Ms

A brand famous for its unique button-shaped chocolates of assorted colors is an excellent example of undifferentiated marketing. They run commercials during TV shows popular among people of all ages and use humor and product shots to attract anyone looking for a sweet treat.

Persil

Persil brand products

Persil, a washing detergent introduced in 1907, is another good example of mass marketing. Consumer packaged goods like soaps and detergents use undifferentiated marketing strategies since a significant market segment uses them.

Pros and Cons of Undifferentiated Marketing

Pros of Undifferentiated Marketing

  • Cost-effective in the long run
  • Also, Campaigns don’t need constant changes
  • Less market research is needed
  • Greater reach
  • Also, Improved brand image
  • Higher potential for sales

Cons of Undifferentiated Marketing

  • Vulnerable to changes in the market, such as price, inflation, or consumer preferences
  • Customer retention isn’t all that great
  • Initial costs are generally high because of the broad reach

What is Differentiated Marketing?

Differentiated marketing, also known as multi-segment marketing, is when a company appeals to two or more different target audiences, market segments, or demographics. Further, by targeting multiple segments, a brand can build its customer base and can start building brand awareness.

Looking back at the pizza analogy used in undifferentiated marketing. Likewise, here in differentiated marketing, one slice is considered as a specific segment of the market.

Differentiated marketing depicted with a pizza

With differentiated marketing, companies can target different customer segments and groups by making personalized messages for each of them. Unlike undifferentiated marketing, a multi-segment strategy allows companies to formulate separate approaches to reach different segments of their audience.

This strategy is more applicable for wholesale and retail companies since they have a wide reach to different consumer groups.

Examples of Differentiated Marketing

  • Nike
  • Tesla
  • Lilly Pulitzer
  • Bumble

Nike

Truly, in terms of footwear, Nike primarily sells sports shoes. If they advertised only about sports shoes, they wouldn’t have come this far. Like most clothing brands, Nike offers products for various segments.

They have various footwear segments, such as shoes for runners, weightlifters, cyclists, gym-goers, golfers, outdoor adventures, or even sports fashion wear. In fact, they even have shoes specific for men, women, and children.

Different segments of Nike shoes

Source- Nike

Nike is able to target a wide variety of segments because of its extensive resources and an understanding of its target market. They have a diverse range of products. To sum up, all of Nike’s products are specially manufactured and promoted to reach various market segments.

Tesla

Tesla is an electric vehicle company and targets customers in the luxury sector. They also manufacture Autonomous/self-driving cars. Also, their eco-friendly cars have several unique features, which separates them from their competition. Some of the features include, For example- Self-driving options, frequent software updates, solar panels, and many more. Therefore, looking at all the features provided, Tesla chose to segment their target audience.

Tesla

Lilly Pulitzer

Lilly Pulitzer

Lilly Pulitzer is a luxury beachwear company founded in Palm Beach, Florida, in the year 1959. Later, the company collaborated with Target and released a more affordable line of clothing, accessories, cosmetics, and home goods. Consequently, the overwhelming responses were enough to crash Target’s site the day their collection was launched.

To sum up, by offering a diverse line of products for a limited time and at more locations, Lilly Pulitzer created enough demand and acquired new loyal customers at a much lower cost per lead.

Bumble

Bumble, also known as the dating app where women make the first move after a match is found.

Later, Bumble realized that their app’s primary purpose was to create connections rather than just dating and released its BFF mode in 2016. Soon after, the brand launched Bumble Bizz, which allowed freelancers and entrepreneurs to connect using its platform. Therefore, by offering various modes, Bumble increased its customer retention after a user left the dating scene.

Pros and Cons of Differentiated marketing

Pros of Differentiated Marketing

  • Chance to understand the actual needs and expectations of your customers
  • The opportunity to pick clients based on your brand’s resources
  • Offering the right products to your customers
  • Efficient use of company’s resources
  • Increased sales revenue
  • Satisfied customers
  • Enhances competitive advantage

Cons of Differentiated Marketing

  • Increased advertising costs to reach every segment
  • Customers may respond differently
  • Limitations can happen in business growth because of targeting small groups of customers
  • Expect higher competition when other brands sell the same product at a lower price

Undifferentiated Marketing vs. Differentiated Marketing

Moreover, the motive of designing a marketing strategy is to craft a detailed approach and maintain focus over a marketing campaign. Undifferentiated and differentiated are two such marketing strategies that both can be advantageous in different situations.

Undifferentiated Marketing strategy

An undifferentiated marketing strategy enables marketers to make use of one message in each market segment. It’s pretty similar to mass marketing, and marketers can create a message that attracts everyone. So, the message is generic and different users can relate to it.

Differentiated Marketing strategy

Brands that use differentiated marketing strategies create campaigns that appeal to at least two different consumer segments. For instance, a store can market its products to people from two different age groups(kids’ shoes and adults’ shoes).

Also, differentiated messages can be used in one campaign for different segments. For example- A retailer can use the message of low cost to attract budget-conscious users and signal product quality to an affluent market segment.

Concentrated Marketing

Concentrated marketing or niche marketing is when a brand creates a single marketing message for a specific market segment/audience. This is a natural step for any business looking to find its niche(ideal market segment).

Looking back at the Pizza analogy, a slice of the pizza represents the niche.

Concentrated marketing depicted by a pizza

Example of concentrated marketing

Finally, to better understand how concentrated marketing works, let’s look at an example

LEGO

LEGO is one of the leading toy brands in the world, founded in 1932. And, their target audience is mainly kids between the ages of 1 to 15.

In 2011, LEGO launched a social media platform where users would post their designs and unique ideas. They get rated by community users. This further helped LEGO with better customer retention and brand loyalty.

Lego toys- concentrated marketing

Pros and Cons of Concentrated Marketing

Pros of Concentrated Marketing

  • The most cost-effective strategy for small businesses
  • Great for finding your niche/target audience
  • By focusing on a narrow segment, your brand can build authority and dominate

Cons of Concentrated Marketing

  • Only works with smaller segments
  • By having less diversity, it can be challenging to expand later

Micromarketing

Micromarketing targets a specific microsegment, an individual, or within a niche market. This strategy is exceptionally targeted because all the marketing efforts are focused on the unique characteristics of these micro-segments or individuals.

Looking back at the Pizza analogy we used before, when a slice is cut into smaller pieces, they are called micro-segments.

Micromarketing depicted using a pizza

Example of Micromarketing

Red Bull successfully implemented the micromarketing strategy. The brand targeted youth participating in extreme outdoor sports and successfully built a marketing strategy around it. And, it excited the youth, who were attracted to RedBull energy drinks.

Pros and Cons of Micromarketing

Pros of micromarketing

  • Highly targeted
  • Cost-efficient strategy
  • They provide user-generated growth-users first like your product/service, then spread the word to their family and friends

Cons of micromarketing

  • Time-consuming process
  • High customer acquisition costs(expensive to bring in customers initially)
  • Probability of missing the target segment

Key takeaways

Finally, understanding the different market targeting strategies and the differences between undifferentiated, differentiated, concentrated, and micromarketing can help you decide the perfect marketing strategy for your future campaigns. So, weigh in all the pros and cons of all the strategies and choose the most type of target marketing that will work best for your business needs.

Frequently Asked Questions(FAQ)

What is undifferentiated marketing example?

coke bottles

Any Coca-Cola campaign is a common example of undifferentiated marketing. Coca-Cola sells its iconic soda using the same bottle design, ads, and distribution channels. With a few exceptions, it has used the undifferentiated approach for most of its history.

What is an undifferentiated marketing strategy?

undifferentiated marketing

Undifferentiated marketing, usually known as mass marketing, is when a firm ignores unique segment differences to focus on the entire audience with a single offering. It enables firms to reach out to more consumers for less money while also improving brand recognition.

What is an example of differentiated marketing?

Nike segmentation

Differentiated marketing strategy is more applicable for wholesale and retail companies since they have a wide reach to different consumer groups. A good example would be Nike Shoes. They have various footwear segments, such as shoes for runners, weightlifters, cyclists, gym-goers, golfers, outdoor adventures, or even sports fashion wear. In fact, they even have shoes specific for men, women, and children.

What is the differentiated marketing?

differentiated marketing

Differentiated marketing, also known as multi-segment marketing, is when a company appeals to two or more different target audiences, market segments, or demographics. Further, by targeting multiple segments, a brand can build its customer base and can start building brand awareness.

Resources

  1. “What Are Differentiated Marketing, Concentrated, and Undifferentiated Marketing?”– ReferralRock
  2. “What is Undifferentiated Marketing: Basics”– SendPulse
  3. “Micromarketing”– Corporate Finance Institute

One Response

  1. Divya Kotwal says:

    Good work !! Woah.

Leave a Reply

Your email address will not be published. Required fields are marked *